5 alternatives to borrowing from banks

Borrowers and lenders list and bid for loans on Prosper, an eBay-like auction site that helps process loans of up to $25,000. Interest rates depend on a person's credit history and other criteria - lenders have access to a borrower's personal story, endorsements from friends and photos. But the San Francisco-based startup recently had to stop processing new loans while it seeks regulatory approval from the Securities and Exchange Commission to create a secondary market in which lenders can sell their loans. Prosper has 830,000 members.

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